Regulatory Alerts2022-10-03
Added · Updated
ESMA Public Statement on the Impact of Inflation in the Context of Investment Services to Retail Clients
ESMA reminds investment firms of MiFID II requirements regarding the consideration of inflation risks when manufacturing and distributing investment products and providing services to retail clients. Firms must ensure information provided to retail clients comprehensibly reflects inflation risks and their potential effect on investment value and returns. Suitability assessments must carefully consider inflation risk as part of market and credit risk evaluations, with particular attention to clients' investment horizons. Manufacturers and distributors are expected to incorporate the effect of expected inflation into their product governance processes.
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